2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 58 2018 2019 2020 2021 Total cases 2,215 2,436 1,601 1,575 Cases outside U.S. 52% 47% 51% 54% Cases in U.S. 48% 53% 49% 46% Anonymous reporting 35% 37% 40% 41% Cases substantiated* 35% 47% 51% 49% Terminations** 40% 41% 37% 43% Average days to close*** 10 22 17 27 MAINTAINING THE CODE Cummins relies on its employees to speak up if they witness behavior that potentially violates the Code of Business Conduct. Employees may report a potential violation through a secure website or a toll-free telephone number. TRAININGS COMPLETED Anti-bribery 28,260 Careful Communications at Work 64 Code of Business Conduct 270 Conflicts of Interest 46 Data Privacy 28,743 Doing Business Ethically 2,352 Export Compliance 60 Preventing Money Laundering 156 Protecting Human Rights in the Supply Chain 106 Treatment of Each Other at Work 4,947 COMPLIANCE TRAINING IN 2021 Ethics and Compliance training had more than 65,000 course completions in 2021. Courses were offered virtually with a special emphasis on anti-bribery and data privacy for the year. MAINTAINING THE CULTURE A significant aspect of the Ethics and Compliance function’s work involves making the most of online training as a means of reminding employees that Cummins’ value of integrity never wavers. The function in 2021 introduced new training content to offer a more modern feel, with additional vignettes and scenario-based training. The content continues to focus on issues such as anti-bribery, antitrust, and fair competition, but from a fresh perspective. Training topics are assigned on a cyclical basis over a period of several years, so an employee does not take a course on every compliance topic every year. In addition, some trainings target specific groups of employees who would find it most relevant. The function also developed scenario-based training in 2021 for nearly 2,000 supervisors designed to help them with the critical job of creating and maintaining an ethical culture. Finally, the function conducts ethics and compliance reviews of significant partners and distributors to confirm they share Cummins’ values. KEY TO THE NEXT CENTURY Cummins is entering an exciting period of change, not just in the power technologies it is improving and developing, but also in how the company produces those technologies and how employees work in light of the movement toward flexible and remote working arrangements. In the midst of all this change, company leaders know one aspect of working at Cummins must not be lost: the company’s commitment to ethical behavior. It was critical during Cummins’ first 100 years, and it will be key to the company’s success for the next century. * Substantiated cases are now calculated on cases only investigated through the Ethics Investigation Process. ** The termination rate is now calculated on substantiated cases and cases only investigated through the Ethics Investigation Process. *** The average days to close formula has been updated to account for missing dates in the data. CUMMINS SUPPLIER CODE OF CONDUCT The Cummins Supplier Code of Conduct applies to all businesses providing products or services to Cummins and its subsidiaries, joint ventures, divisions, or affiliates. Available in 15 languages, the supplier code is built around seven principles and helps Cummins ensure it is doing business with other companies around the world that share its values for these practices: 01 Obey the law everywhere. 02 Treat people with dignity and respect. 03 Avoid conflicts of interest. 04 Provide a safe and healthy workspace. 05 Protect Cummins technology, information, and intellectual property. 06 Protect the environment and conserve natural resources. 07 Assist Cummins in enforcing the code. Cummins requires a verification response from suppliers that they are following the Supplier Code of Conduct before they are added to the company’s supplier database. Cummins may visit facilities and conduct audits to ensur e compliance. ETHICS AND COMPLIANCE //